We reported on December 30 last year, that the ongoing funding winterand business challenges faced by new-age internet companies
resulted in nearly 18,000 job losses, according to data compiled by executive search firm Longhouse Consulting.
Big tech firms such as
Meta,
Twitter,
Amazon,
Alphabet, and
Microsoft announced en masse layoffs last year citing “global uncertainty, dwindling ad revenue, rising inflation and over hiring during the pandemic”.
ETtechWe are barely a week into 2023 and layoffs are in the news. In a note to employees, Amazon chief executive officer Andy Jassy said the
ecommerce giant is set to cut 18,000 jobs. The figure has risen from last year when Amazon said the job cuts would impact 10,000 people.
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Tech companies saw a boom in usage during the Covid-19 pandemic as businesses flourished on the increased demand for digital products and services. They also benefitted from the fiscal stimulus announced by various governments globally to improve the living and working conditions of the people.
ETtechThe world became more dependent on technology which led to mass hirings for several roles. But that didn’t last long once the world returned to normalcy.
The demand shrunk, the need for the employees who were hired in a frenzy during the Covid-19 pandemic also fell leading to these companies handing pink slips to employees.
According to Layoffs Tracker – an online publication tracking layoffs in the tech and non-tech sector – more than
272,000 people working in tech companies across the world lost their jobs between January 2022 and YTD.
In January 2023 itself, over 28,000 employees across 18 companies have been shown the exit door. Interestingly, 71,416 employees were sacked by 204 companies in November 2022 – marking the highest number of layoffs in a single month since last January.
These number is expected to go much higher as the year progresses with signs of an imminent recession being pointed out by major financial institutions and even IMF chief Kristalina Georgieva, who has predicted that the recession will hit at least a third of the world in 2023.
ETtech has put together a comprehensive list of the companies that have slashed jobs in recent months:
Amazon
Amazon CEO Andy Jassy said the e-commerce giant is set to cut 18,000 jobs. The job cuts were initially expected to affect about 10,000 jobs.
Salesforce
Salesforce will cut about 10% of its 80,000-strong workforce and reduce its real estate holdings, according to a regulatory filing on January 4. CEO Marc Benioff said in a letter to employees, “We hired too many people” during the pandemic.
Facebook parent Meta will slash 11,000 jobs, the first major round of layoffs in the social-media company’s history. Along with layoffs, the company will extend its hiring freeze through the first quarter.
“I want to take accountability for these decisions and for how we got here,” CEO Mark Zuckerberg said in the statement.
Elon Musk fired around 3,700 employees of the microblogging platform after taking over the company in a $44 billion deal, “Regarding Twitter’s reduction in force, unfortunately, there is no choice when the company is losing over $4M/day,” Musk tweeted on Nov. 4.
Vimeo announced on Thursday it will cut 11% of its global workforce. According to its annual regulatory filing, Vimeo employed around 1,200 workers as of December 2021.
Bytedance
According to a Reuters report, Chinese tech giant ByteDance has launched a round of layoffs which is set to affect 10% of its staff members focused on R&D, products and operations.
Cisco
Cisco Systems Inc. is beginning a restructuring plan that will affect about 5% of employees. The company says it will incur pre-tax charges of about $600 million for severance, termination, and other costs.
Coinbase
Coinbase announced in June it would lay off 18% of its workforce, or roughly 1,200 employees.
HP
HP Inc said it will cut as many as 6,000 jobs over the next three years. The company will also reduce its real estate footprint.
Intel
Intel said it is cutting jobs and slowing spending on new plants to save $3 billion.
Seagate
Seagate Technology said that it’s paring about 3,000 jobs. “We have taken quick and decisive actions to respond to current market conditions and enhance long-term profitability,” CEO Dave Mosley said.
